US Government Informative - Wall Street Bailout
LAS VEGAS, NEVADA -- We should all support President Bush’s and Secretary Paulson’s proposal for the government to purchase the bad loans that bank made to thousands of borrowers. I say this as a fiscal conservative, an advocate of a free market and as an American citizen and taxpayer who often does not support President Bush’s policies and decisions. This time, however, he got it right. Moreover, the requested $700 billion is not a bailout but a risky investment that may turn profitable when the economy improves.
Many elected officials oppose the legislation because their constituents complain that the government would be bailing out Wall Street at Main Street’s expense. Yet they must be aware that this so-called “Wall Street Bailout” would purchase bad loans that were made primarily on Main Street. For example, here in Las Vegas, I watched people buy homes that they could not afford. They then took out 2nd and 3rd mortgages to buy pools, cars and other luxuries. In retrospect, financial institutions (aka “Wall Street”) should not have made loans to people who were overextended, had poor credit or could not even afford a down payment on a home that cost five or more times their annual income. However, both presidential candidates have fostered a misconception that blames Wall Street entirely for the loan crisis and portrays the borrowers, who abandoned their homes and their mortgages, as the victims of Wall Street’s greed.
I urge everyone who has taken the time to read this to advise their friends that this so-called “Wall Street Bailout” stems from irresponsible borrowing on “Main Street”.